ARTIFICIAL INTELLIGENCE (AI) IN BIOTECHNOLOGY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The high manufacturing costs associated with developing advanced AI technologies for biotechnology applications poses a major challenge for growth in this sector. Developing sophisticated neural networks, complex algorithms and specialized computing hardware required for medical imaging analysis, drug discovery, precision agriculture and other areas takes massive investments in research and development. It often involves the work of highly skilled engineers, data scientists and researchers for several years. This significant upfront capital expenditure makes it difficult for startups and smaller companies to enter the market and commercialize their innovations. Even large corporations find it challenging to justify such high development costs unless there is potential for substantial returns. The costs are further exacerbated by the need for specialized expertise and infrastructure. Advanced AI solutions for tasks like genomic sequencing, protein structure prediction and epidemic modeling rely on domain-specific knowledge that is difficult to find. They also require high-performance computing facilities with cutting-edge processors, large storage capacities and fast networking capabilities. Maintaining such resources involves recurring operational expenses. According to data from the United Nations Educational, Scientific and Cultural Organization (UNESCO), almost 60% of countries worldwide face severe shortages of biotechnologists and data science professionals. The limited availability of human capital drives up salaries and training costs. Overall, the combination of extensive R&D investments and scarcity of key resources leads to very high entry barriers for organizations.

Market Opportunities: Growing focus on personalized medicine

Growing focus on personalized medicine can offer growth opportunities for global AI in biotechnology market. Personalized medicine involves tailoring medical treatment to the individual characteristics of each patient. With the help of artificial intelligence and machine learning technologies, the prediction, detection and prognosis of diseases can be far more precise taking into individual patient's clinical, genomic and molecular characteristics. AI and machine learning algorithms allow analysis of huge amounts of molecular, clinical and imaging data to better understand disease at a personal level. These technologies can help identify genomic variations that make a disease more or less severe for particular individuals. By leveraging large datasets containing genomes, health records and outcomes of tens of thousands of patients, AI enables precision in disease prediction, early detection, treatment selection and monitoring of treatment response at an individual level. For example, AI tools are being used to analyze whole genome sequencing data to predict cancer risk and recommend targeted prevention for high-risk individuals based on their genes.

In 2021, according to the report published by the World Health Organization, the number of national precision medicine initiatives has doubled from 2020-2021 with over 60 countries developing policies to implement genomic medicine and promote data sharing.